Always name a specific person

Do NOT list 'my estate' as beneficiary. When the benefit goes to your estate, it becomes probate property — which can delay payout by 6–12 months and expose it to creditors. Name your spouse, adult child, sibling, or trusted friend by name.

Always name a contingent (backup) beneficiary

If your primary beneficiary passes before you, and there's no contingent named, the benefit falls back to your estate — creating the probate problem above. Always list a backup: another adult child, a sibling, or a trust.

Update after major life events

Marriage, divorce, death of a spouse or child, remarriage, birth of grandchildren — every one of these is a reason to review your beneficiary. It takes 5 minutes and can prevent an ex-spouse from receiving your funeral benefit by accident.

How the benefit is paid

Most carriers pay within 24–72 hours after receiving a certified death certificate and the completed claim form. Payment is by check, direct deposit, or wire — beneficiary's choice. The benefit is federal income-tax free.